The Avanade AI Value Report 2025 surveyed more than 4,000 IT and business leaders across 11 countries, capturing insights from mid-market organisations with annual revenues between $500 million and $5 billion. Spanning sectors from healthcare and manufacturing to banking and retail, the research highlights how companies are approaching AI with both ambition and pragmatism.

Confidence in AI’s potential is striking. Nearly 60% of organisations expect up to fourfold returns on AI copilots and agents within just 12 months. What’s particularly telling is how value is being measured: while 84% acknowledge AI investments can reduce headcount costs, only 9% evaluate ROI this way. Instead, 69% focus on productivity gains and operational improvements as the primary benchmarks of success.

The most effective strategies combine short-term wins with long-term planning, starting with proven platforms and scaling as organisational AI maturity grows

Rapid Implementation Through Pragmatic Approaches

The rush to adopt AI is driven by the need to stay competitive. 85% of decision-makers worry that moving too slowly could leave them behind, which is why AI is being deployed across industries at pace. Healthcare is leading the charge, with 95% of leaders calling rapid adoption critical. Manufacturers, meanwhile, are showing that speed doesn’t have to mean complexity, with 56% leveraging ready-made, off-the-shelf AI solutions for quick wins.

What stands out is the pragmatism behind this adoption. Rather than overcomplicating with bespoke systems, 81% of organisations are starting with proven, function-specific tools. It’s a phased approach: gain experience, capture immediate value, and then scale into more advanced applications. In other words, companies aren’t just moving quickly, they’re moving with purpose, balancing the urgency to lead with the foresight to scale responsibly.

Workforce Integration Creates New Value Dynamics

The Avanade research also highlights encouraging progress in human-AI collaboration. Organisations are moving beyond seeing AI as just a productivity tool: over half of respondents give their AI agents an “A grade” for current performance, and 53% plan to continue measuring AI contributions over the next 12 months.

Confidence is particularly strong from board members and C-suite leaders in regards to AI performance, with 60% at the highest organisational levels awarding top grades compared to 44% of mid-level managers. This leadership endorsement is crucial, as it continues to drive momentum, secure resources, and positions AI as a strategic priority.

Equally important, investment in people is accelerating. 79% of organisations plan to expand AI training, recognising that real value comes from equipping teams to work fluently with intelligent systems. Successful AI adoption depends not just on technology, but on building organisational capability and readiness.

Building Robust Foundations for Sustainable Growth

Beneath the rush to adopt AI, companies are also building the foundations for long-term success. More than 90% have accelerated IT modernisation and cloud adoption, ensuring their infrastructure can support advanced AI at scale.

Responsible AI remains a priority. 96% plan to fine-tune or retrain AI models by the end of 2025, and 42% are developing guidelines to ensure ethical deployment. The drop in fully complete frameworks  (from 48% to 39% year-on-year) reflects ongoing adaptation to evolving regulations and expanding use cases.

Data governance is receiving careful attention, as organisations recognise that sustainable AI success relies on strong foundations across technology, ethics, and operational processes.

Strategic Decision-Making and Risk Management

AI is already shaping boardroom decisions. 96% of organisations use it to guide strategy, yet only 26% fully trust the outputs – a sign of careful, measured risk management. Leaders are testing AI in controlled environments, building confidence and organisational fluency before granting greater autonomy.

By creating safe spaces for experimentation, executives allow teams to explore AI’s potential without compromising critical operations. Adoption isn’t just about technology; it succeeds when culture, skills, and trust are in place.

The research shows mid-market organisations are striking the right balance: moving fast enough to stay competitive, while laying the ethical and strategic foundations necessary for long-term leadership in the evolving AI landscape.